Fed's Bullard: Pretty Close to a Neutral Rate

The transcript discusses the impact of financial repression on savers and banks, questioning whether raising interest rates could stimulate the economy. It highlights the Federal Reserve's current stance on monetary policy, focusing on short-term goals and a neutral rate. The conversation shifts to the potential use of negative interest rates, with mixed results observed globally. The speaker expresses skepticism about adopting negative rates in the US, citing sufficient economic tools to handle a recession without them.

What is one reason banks might be hesitant to make loans currently?

• Increased competition

• Low profit margins

• Strict regulations

• High interest rates

What is the Federal Reserve's current focus regarding interest rates?

• Immediate changes

• Forecast horizon of the next two years

• Long-term predictions

• Past economic performance

What is the theme of the conference discussed in the transcript?

• Banking regulations

• Historical monetary policies

• Future of the Fed's toolkit

• Global economic trends

What is a potential downside of implementing negative interest rates in the US?

• Boosting economic growth

• Disrupting the US banking system

• Increasing inflation

• Reducing unemployment

Which country has experienced mixed results with negative interest rates?

• Germany

• Japan

• Canada

• Australia